BILL NUMBER: SB 1467 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 30, 2010
AMENDED IN ASSEMBLY JUNE 10, 2010
AMENDED IN SENATE APRIL 6, 2010
INTRODUCED BY Senator Padilla
FEBRUARY 19, 2010
An act to amend Sections 25217.5 and 25310 of, and to repeal the
heading of Chapter 6.5 (commencing with Section 25550) of Division 15
of, the Public Resources Code, and to amend Sections 365.1, 394.27,
394.4, 394.7, 395.5, 454.1, 454.6, 1822, 2791, 2792, 2793, 2794,
2795, 2796, 2797, 2798, 2799, 2841, 2842, 2842.4, 2889.4, 2889.5,
2894, 5142, 7000, 8341, 8366, and 9607 of, to
amend and renumber Sections 380, 381.2, 385.2, 454.5, 454.55, 454.56,
and 635 of, to add Section 326 to, to add a heading as Chapter 5
(commencing with Section 8380) to Division 4.1 of, and to repeal
Sections 389, 709.7, and 1701.6 of, the Public Utilities Code,
relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
SB 1467, as amended, Padilla. Public Utilities Commission:
reporting: wharfingers.
(1) Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations, as defined.
This bill would correct certain existing references in the Public
Utilities Code by revising "electric corporation" to "electrical
corporation."
(2) Under existing law, the PUC may establish its own procedures,
subject to statutory limitations or directions and constitutional
requirements of due process. Existing law requires the commission to
develop, publish, and annually update an annual work plan access
guide that describes the scheduled ratemaking proceedings and other
decisions that may be considered by the PUC during the calendar year,
as prescribed. Existing law requires the president of the PUC to
annually appear before the appropriate policy committees of the
Senate and Assembly to report on the annual work plan access guide
and to report on the annual report of the PUC on the number of cases
where resolution exceeded the time periods prescribed in scoping
memos and the days that commissioners presided in hearings.
This bill would revise and recast these provisions to instead
require the president of the PUC to annually appear before these
committees to report on the activities of the PUC, including the work
plan access guide and the annual case resolution report. The bill
would additionally require the Chair of the State Energy Resources
Conservation and Development Commission to appear annually before
these committees to report on the activities of that commission.
(3) The California High Speed Internet Access Act of 1999 (the
act), among other things, requires the PUC to monitor and participate
in a specified proceeding of the Federal Communications Commission
addressing whether to require incumbent local exchange carriers, as
defined, to permit interconnection by competitive data local exchange
carriers, as defined, at any technically feasible point, to permit
those competitive local exchange carriers to provide high bandwidth
data services over telephone lines with voice services provided by
incumbent local exchange carriers.
This bill would repeal the California High Speed Internet Access
Act of 1999.
(4) The Public Utility Act requires the Secretary of the
California Environmental Protection Agency to evaluate and recommend
to the Legislature public policy strategies that address the
feasibility of shifting costs from electric utility ratepayers, in
whole or in part, to other classes of beneficiaries, as prescribed,
and requires the secretary to prepare and submit to the Legislature
an annual report, in accordance with a prescribed schedule, on the
existence, status, and progress of any public policy measures for
cost-shifting developed as a result of the recommendations made
pursuant to those provisions.
This bill would repeal these reporting requirements.
(5) Existing law regulating the provision of telecommunications
services requires a local exchange service provider to provide
prescribed consumer protections relating to pay-per-use telephone
service features and verification of changes in service providers.
This bill would revise those provisions to refer to local exchange
carriers instead of local exchange service providers.
(6) Under existing law, the disclosure of any information by an
interexchange telephone corporation, a local exchange telephone
corporation, or a provider of commercial mobile radio service, as
defined, in good faith compliance with the terms of a state or
federal court warrant or order or administrative subpoena issued at
the request of a law enforcement official or other federal, state, or
local governmental agency for law enforcement purposes, is a
complete defense against specified civil actions for the wrongful
disclosure of that information.
This bill would revise that reference to a local exchange
telephone corporation to, instead, refer to a local exchange carrier.
(7) Under existing law, household goods carriers are subject to
the jurisdiction and control of the PUC under the Household Goods
Carriers Act. The act authorizes a household goods carrier to enforce
a lien on household goods and personal effects in accordance with
specified provisions of the act and the Uniform Commercial
Code-Secured Transactions.
This bill would modify how a household goods carrier can enforce
its lien by substituting procedures set forth in the Uniform
Commercial Code that are applicable to the enforcement of a warehouse'
s lien for the existing procedures that are applicable to secured
transactions. The bill would authorize a household goods carrier that
disposes of goods through a lien sale to deduct, after the sale, its
reasonably incurred expenses related to the sale of the goods in
addition to the contract maximum total dollar amount and would
require the carrier to thereafter provide, without charge, an
accounting of the proceeds of the sale.
(8)
(7) This bill would make other technical and
nonsubstantive changes.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25217.5 of the Public Resources Code is amended
to read:
25217.5. The chair of the commission shall do both of the
following:
(a) Direct the adviser, the executive director, and other staff in
the performance of their duties in conformance with the policies and
guidelines established by the commission.
(b) Annually appear before the Senate Committee on Energy,
Utilities and Communications and the Assembly Committee on Utilities
and Commerce to report on the activities of the commission.
SEC. 2. Section 25310 of the Public Resources Code is amended to
read:
25310. On or before November 1, 2007, and by November 1 of every
third year thereafter, the commission in consultation with the Public
Utilities Commission and local publicly owned electric utilities, in
a public process that allows input from other stakeholders, shall
develop a statewide estimate of all potentially achievable
cost-effective electricity and natural gas efficiency savings and
establish targets for statewide annual energy efficiency savings and
demand reduction for the next 10-year period. The commission shall
base its estimate at least in part on information developed pursuant
to Sections 637, 639, 715, 9615, and 9615.5 of the Public Utilities
Code. The commission shall, for each electrical corporation and each
gas corporation, include in the integrated energy policy report, a
comparison of the public utility's annual targets established
pursuant to Sections 637 and 639, and the public utility's actual
energy efficiency savings and demand reductions.
SEC. 3. The heading of Chapter 6.5 (commencing with Section 25550)
of Division 15 of the Public Resources Code is repealed.
SEC. 4. Section 326 is added to the Public Utilities Code, to
read:
326. (a) The president of the commission shall annually appear
before the appropriate policy committees of the Senate and the
Assembly to report on the activities of the commission, including,
but not limited to, the matters described in subdivision (b).
(b) The president of the commission shall annually report on the
annual work plan access guide required pursuant to Section 321.6 and
on the number of cases where resolution exceeded the time periods
prescribed in scoping memos and the days that commissioners presided
in hearings, as required pursuant to Section 13 of Chapter 856 of the
Statutes of 1996.
SEC. 5. Section 389 of the Public Utilities Code is repealed.
SEC. 6. Section 365.1 of the Public Utilities Code is amended to
read:
365.1. (a) Except as expressly authorized by this section, and
subject to the limitations in subdivisions (b) and (c), the right of
retail end-use customers pursuant to this chapter to acquire service
from other providers is suspended until the Legislature, by statute,
lifts the suspension or otherwise authorizes direct transactions. For
purposes of this section, "other provider" means any person,
corporation, or other entity that is authorized to provide electric
service within the service territory of an electrical corporation
pursuant to this chapter, and includes an aggregator, broker, or
marketer, as defined in Section 331, and an electric service
provider, as defined in Section 218.3. "Other provider" does not
include a community choice aggregator, as defined in Section 331.1,
and the limitations in this section do not apply to the sale of
electricity by "other providers" to a community choice aggregator for
resale to community choice aggregation electricity consumers
pursuant to Section 366.2.
(b) The commission shall allow individual retail nonresidential
end-use customers to acquire electric service from other providers in
each electrical corporation's distribution service territory, up to
a maximum allowable total kilowatthours annual limit. The maximum
allowable annual limit shall be established by the commission for
each electrical corporation at the maximum total kilowatthours
supplied by all other providers to distribution customers of that
electrical corporation during any sequential 12-month period between
April 1, 1998, and the effective date of this section. Within six
months of the effective date of this section, or by July 1, 2010,
whichever is sooner, the commission shall adopt and implement a
reopening schedule that commences immediately and will phase in the
allowable amount of increased kilowatthours over a period of not less
than three years, and not more than five years, raising the
allowable limit of kilowatthours supplied by other providers in each
electrical corporation's distribution service territory from the
number of kilowatthours provided by other providers as of the
effective date of this section, to the maximum allowable annual limit
for that electrical corporation's distribution service territory.
The commission shall review and, if appropriate, modify its currently
effective rules governing direct transactions, but that review shall
not delay the start of the phase-in schedule.
(c) Once the commission has authorized additional direct
transactions pursuant to subdivision (b), it shall do both of the
following:
(1) Ensure that other providers are subject to the same
requirements that are applicable to the state's three largest
electrical corporations under any programs or rules adopted by the
commission to implement the resource adequacy provisions of Section
635, the renewables portfolio standard provisions of Article 16
(commencing with Section 399.11), and the requirements for the
electricity sector adopted by the State Air Resources Board pursuant
to the California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code). This
requirement applies notwithstanding any prior decision of the
commission to the contrary.
(2) (A) Ensure that, in the event that the commission authorizes,
in the situation of a contract with a third party, or orders, in the
situation of utility-owned generation, an electrical corporation to
obtain generation resources that the commission determines are needed
to meet system or local area reliability needs for the benefit of
all customers in the electrical corporation's distribution service
territory, the net capacity costs of those generation resources are
allocated on a fully nonbypassable basis consistent with departing
load provisions as determined by the commission, to all of the
following:
(i) Bundled service customers of the electrical corporation.
(ii) Customers that purchase electricity through a direct
transaction with other providers.
(iii) Customers of community choice aggregators.
(B) The resource adequacy benefits of generation resources
acquired by an electrical corporation pursuant to subparagraph (A)
shall be allocated to all customers who pay their net capacity costs.
Net capacity costs shall be determined by subtracting the energy and
ancillary services value of the resource from the total costs paid
by the electrical corporation pursuant to a contract with a third
party or the annual revenue requirement for the resource if the
electrical corporation directly owns the resource. An energy auction
shall not be required as a condition for applying this allocation,
but may be allowed as a means to establish the energy and ancillary
services value of the resource for purposes of determining the net
costs of capacity to be recovered from customers pursuant to this
paragraph, and the allocation of the net capacity costs of contracts
with third parties shall be allowed for the terms of those contracts.
(C) It is the intent of the Legislature, in enacting this
paragraph, to provide additional guidance to the commission with
respect to the implementation of subdivision (g) of Section 635, as
well as to ensure that the customers to whom the net costs and
benefits of capacity are allocated are not required to pay for the
cost of electricity they do not consume.
(d) (1) If the commission approves a centralized resource adequacy
mechanism pursuant to subdivisions (h) and (i) of Section 635, upon
the implementation of the centralized resource adequacy mechanism the
requirements of paragraph (2) of subdivision (c) shall be suspended.
If the commission later orders that electrical corporations cease
procuring capacity through a centralized resource adequacy mechanism,
the requirements of paragraph (2) of subdivision (c) shall again
apply.
(2) If the use of a centralized resource adequacy mechanism is
authorized by the commission and has been implemented as set forth in
paragraph (1), the net capacity costs of generation resources that
the commission determines are required to meet urgent system or
urgent local grid reliability needs, and that the commission
authorizes to be procured outside of the Section 635 or Section 636
processes, shall be recovered according to the provisions of
paragraph (2) of subdivision (c).
(3) Nothing in this subdivision supplants the resource adequacy
requirements of Section 635 or the resource procurement procedures
established in Section 636.
(e) The commission may report to the Legislature on the efficacy
of authorizing individual retail end-use residential customers to
enter into direct transactions, including appropriate consumer
protections.
SEC. 7. Section 380 of the Public Utilities Code is amended and
renumbered to read:
635. (a) The commission, in consultation with the Independent
System Operator, shall establish resource adequacy requirements for
all load-serving entities.
(b) In establishing resource adequacy requirements, the commission
shall achieve all of the following objectives:
(1) Facilitate development of new generating capacity and
retention of existing generating capacity that is economic and
needed.
(2) Equitably allocate the cost of generating capacity and prevent
shifting of costs between customer classes.
(3) Minimize enforcement requirements and costs.
(c) Each load-serving entity shall maintain physical generating
capacity adequate to meet its load requirements, including, but not
limited to, peak demand and planning and operating reserves. The
generating capacity shall be deliverable to locations and at times as
may be necessary to provide reliable electric service.
(d) Each load-serving entity shall, at a minimum, meet the most
recent minimum planning reserve and reliability criteria approved by
the Board of Trustees of the Western Systems Coordinating Council or
the Western Electricity Coordinating Council.
(e) The commission shall implement and enforce the resource
adequacy requirements established in accordance with this section in
a nondiscriminatory manner. Each load-serving entity shall be subject
to the same requirements for resource adequacy and the renewables
portfolio standard program that are applicable to electrical
corporations pursuant to this section, or otherwise required by law,
or by order or decision of the commission. The commission shall
exercise its enforcement powers to ensure compliance by all
load-serving entities.
(f) The commission shall require sufficient information,
including, but not limited to, anticipated load, actual load, and
measures undertaken by a load-serving entity to ensure resource
adequacy, to be reported to enable the commission to determine
compliance with the resource adequacy requirements established by the
commission.
(g) An electrical corporation's costs of meeting resource adequacy
requirements, including, but not limited to, the costs associated
with system reliability and local area reliability, that are
determined to be reasonable by the commission, or are otherwise
recoverable under a procurement plan approved by the commission
pursuant to Section 636, shall be fully recoverable from those
customers on whose behalf the costs are incurred, as determined by
the commission, at the time the commitment to incur the cost is made
or thereafter, on a fully nonbypassable basis, as determined by the
commission. The commission shall exclude any amounts authorized to be
recovered pursuant to Section 366.2 when authorizing the amount of
costs to be recovered from customers of a community choice aggregator
or from customers that purchase electricity through a direct
transaction pursuant to this subdivision.
(h) The commission shall determine and authorize the most
efficient and equitable means for achieving all of the following:
(1) Meeting the objectives of this section.
(2) Ensuring that investment is made in new generating capacity.
(3) Ensuring that existing generating capacity that is economic is
retained.
(4) Ensuring that the cost of generating capacity is allocated
equitably.
(i) In making the determination pursuant to subdivision (h), the
commission may consider a centralized resource adequacy mechanism
among other options.
(j) For purposes of this section, "load-serving entity" means an
electrical corporation, electric service provider, or community
choice aggregator. "Load-serving entity" does not include any of the
following:
(1) A local publicly owned electric utility.
(2) The State Water Resources Development System commonly known as
the State Water Project.
(3) Customer generation located on the customer's site or
providing electric service through arrangements authorized by Section
218, if the customer generation, or the load it serves, meets one of
the following criteria:
(A) It takes standby service from the electrical corporation on a
commission-approved rate schedule that provides for adequate backup
planning and operating reserves for the standby customer class.
(B) It is not physically interconnected to the electric
transmission or distribution grid, so that, if the customer
generation fails, backup electricity is not supplied from the
electricity grid.
(C) There is physical assurance that the load served by the
customer generation will be curtailed concurrently and commensurately
with an outage of the customer generation.
SEC. 8. Section 381.2 of the Public Utilities Code is amended and
renumbered to read:
8380. (a) By March 1, 2010, the commission, by opening a new
proceeding or amending an existing proceeding, shall investigate the
ability of electrical corporations and gas corporations to provide
various energy efficiency financing options to their customers for
the purposes of implementing the program developed pursuant to
Section 25943 of the Public Resources Code.
(b) In the report prepared pursuant to Section 384.2, the
commission shall include an assessment of each electrical corporation'
s and each gas corporation's implementation of the program developed
pursuant to Section 25943 of the Public Resources Code.
SEC. 9. Section 385.2 of the Public Utilities Code is amended and
renumbered to read:
8385. (a) Upon the completion and promulgation of regulations
pursuant to subdivision (a) of Section 25943 of the Public Resources
Code, each governing body of a local publicly owned electric utility,
as defined in Section 224.3, shall be responsible for implementing
an energy efficiency program that recognizes the intent of the
Legislature to encourage energy savings and greenhouse gas emission
reductions in existing residential and nonresidential buildings,
while taking into consideration the effect of the program on rates,
reliability, and financial resources.
(b) In the report prepared pursuant to Section 9615, each local
publicly owned electric utility shall include both of the following:
(1) The utility's status in implementing an energy efficiency
program pursuant to subdivision (a) and the utility's progress toward
attaining the goal of the program.
(2) The net energy savings from energy efficiency improvements
installed pursuant to this section.
SEC. 10. Section 394.27 of the Public Utilities Code is amended to
read:
394.27. When a customer files a claim with an electrical
corporation for damages to property resulting from the curtailment of
electric service due to the failure of the electrical corporation to
reasonably provide service or restore service within a reasonable
time after a fire, flood, earthquake, other natural disaster, or act
of God, the electrical corporation shall inform the customer that
such claim may be pursued in small claims court or other judicial
courts, depending on the amount of the claim.
SEC. 11. Section 394.4 of the Public Utilities Code is amended to
read:
394.4. Rules that implement the following minimum standards shall
be adopted by the commission for electric service providers offering
electrical services to residential and small commercial customers
and the governing body of a public agency offering electrical
services to residential and small commercial customers within its
jurisdiction:
(a) Confidentiality: Customer information shall be confidential
unless the customer consents in writing. This shall encompass
confidentiality of customer specific billing, credit, or usage
information. This requirement shall not extend to disclosure of
generic information regarding the usage, load shape, or other general
characteristics of a group or rate classification, unless the
release of that information would reveal customer specific
information because of the size of the group, rate classification, or
nature of the information.
(b) Physical disconnects and reconnects: Only an electrical
corporation, or a publicly owned electric utility, that provides
physical delivery service to the affected customer shall have the
authority to physically disconnect or reconnect a customer from the
transmission or distribution grid. Physical disconnection by
electrical corporations subject to the commission's jurisdiction
shall occur only in accordance with protocols established by the
commission. Physical disconnection by publicly owned electric
utilities shall occur only in accordance with protocols established
by the governing board of the local publicly owned electric utility.
(c) Change in providers: Upon adequate notice supplied by a
electric service provider to the electrical corporation or local
publicly owned electric utility providing physical delivery service,
customers who are eligible for direct access may change their energy
supplier. Energy suppliers may charge for this change, provided that
any fee or penalty charged by the supplier associated with early
termination of service, shall be disclosed in that contract or
applicable tariff.
(d) Written notices: Notices describing the terms and conditions
of service as described in Section 394.5, service agreements, notices
of late payment, notices of discontinuance of service, and
disconnection notices addressed to residential and small commercial
customers shall be easily understandable, and shall be provided in
the language in which the electric service provider offered the
services.
(e) Billing: All bills shall have a standard bill format, as
determined by the commission or the governing body, and shall contain
sufficient detail for the customer to recalculate the bill for
accuracy. Any late fees shall be separately stated. Each electric
service provider shall provide on all customer bills a phone number
by which customers may contact the electric service provider to
report and resolve billing inquiries and complaints. An electric
service provider contacted by a customer regarding a billing dispute
shall advise the customer at the time of the initial contact that the
customer may file a complaint with the commission if its dispute is
not satisfactorily resolved by the electric service provider.
(f) Meter integrity: An electric customer shall have a reasonable
opportunity to have its meter tested to ensure the reasonable
accuracy of the meter. The commission or governing body shall
determine who is responsible for the cost of that testing.
(g) Customer deposits: Electric service providers may require
customer deposits before commencing service, but in no event shall
the deposit be more than the estimated bill for the customer for a
three-month period.
(h) Additional protections: The commission or the governing body
may adopt additional residential and small commercial consumer
protection standards that are in the public interest.
SEC. 12. Section 394.7 of the Public Utilities Code is amended to
read:
394.7. (a) The commission shall maintain a list of residential
and small commercial customers who do not wish to be solicited by
telephone, by an electrical corporation, marketer, broker, or
aggregator for electric service, to subscribe to or change their
electric service provider. The commission shall not assess a charge
for inclusion of a customer on the list. The list shall be updated
periodically, but no less than quarterly.
(b) The list shall include sufficient information for electrical
corporations, marketers, brokers, or aggregators of electric service
to identify customers who do not wish to be solicited, including a
customer's address and telephone number. The list shall be made
accessible electronically from the commission to any party regulated
as an electrical corporation or registered at the commission as an
electric marketer, broker, or aggregator of electric service.
(c) An electrical corporation, marketer, broker, or aggregator of
electric service shall not solicit, by telephone, any customer on the
list prepared pursuant to subdivision (a). Any electrical
corporation, marketer, broker, or aggregator of electric service, or
the representative of an electrical corporation, marketer, broker, or
aggregator of electric service, who solicits any customer on the
list prepared pursuant to subdivision (a) more than once shall be
liable to the customer for twenty-five dollars ($25) for each contact
in violation of this subdivision.
(d) This section shall not apply to the telephone verification
required pursuant to Section 366.5.
SEC. 13. Section 395.5 of the Public Utilities Code is amended to
read:
395.5. (a) For purposes of this section, the following terms have
the following meanings:
(1) "Nonprofit charitable organization" means any charitable
organization described in Section 501(c)(3) of the federal Internal
Revenue Code that has as its primary purpose serving the needs of the
poor or elderly.
(2) "Electric commodity" means electricity used by the customer or
a supply of electricity available for use by the customer, and does
not include services associated with the transmission and
distribution of electricity.
(b) Notwithstanding Section 80110 of the Water Code, a nonprofit
charitable organization may acquire electric commodity service
through a direct transaction with an electric service provider if
electric commodity service is donated free of charge without
compensation.
(c) A nonprofit charitable organization that acquires donated
electric commodity service through a direct transaction pursuant to
this section shall be responsible for paying all of the following:
(1) Those charges and surcharges that would be imposed upon a
retail end-use customer of a community aggregator pursuant to
subdivisions (d), (e), (f), and (g) of Section 366.2.
(2) The transmission and distribution charges of an electrical
corporation or a local publicly owned electric utility.
(3) A nonbypassable charge imposed pursuant to Article 7
(commencing with Section 381), Article 8 (commencing with Section
385), or Article 15 (commencing with Section 399).
(4) Costs imposed upon a load-serving entity pursuant to Section
635.
(d) Existing direct access rules and all service obligations
otherwise applicable to electric service providers shall govern
transactions under this section.
(e) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SEC. 14. Section 454.1 of the Public Utilities Code is amended to
read:
454.1. (a) Except as provided in subdivision (b), if a customer
with a maximum peak electrical demand in excess of 20 kilowatts
located or planning to locate within the service territory of an
electrical corporation receives a bona fide offer for electric
service from an irrigation district at rates less than the electrical
corporation's tariffed rates, the electrical corporation may
discount its noncommodity rates, but may not discount its
noncommodity rates below its distribution marginal cost of serving
that customer. For purposes of this subdivision, the costs of the
electric commodity shall be excluded from both the irrigation
district and electrical corporation's rates. The electrical
corporation may recover any difference between its tariffed and
discounted service from its remaining customers, allocated as
determined by the commission. However, the reallocation may not
increase rates to its remaining customers by any greater amount than
the rates would be increased if the customer had taken electric
distribution service from the irrigation district and the irrigation
district had paid the charge established in subdivision (e) of
Section 9607. Further, there shall be a firewall preventing the
reallocation of such differences resulting from discounting to
residential customers or to commercial customers with maximum peak
demands not in excess of 20 kilowatts. The commission shall review
the discounts provided under this section by each electrical
corporation and report to the Legislature not later than January 15,
2003. The review shall include an assessment of the effectiveness of
the discount levels and the rate impacts to customers of the
discounts. The commission shall include in its report a
recommendation of any changes that should be made to the discount
levels in light of other commission approved discount programs.
(b) Subdivision (a) does not apply to a cumulative 75 megawatts of
load served by the Merced Irrigation District, determined as
follows:
(1) The load is located within the boundaries of Merced Irrigation
District, as those boundaries existed on December 20, 1995, together
with the territory of Castle Air Force Base which was located
outside the district on that date.
(2) For purposes of this section, a megawatt of load shall be
calculated in accordance with the methodology established by the
California Energy Resource Conservation and Development Commission in
its Docket No. 96-IRR-1890.
(c) Subdivision (a) applies to the load of customers that move to
the areas described in paragraph (1) of subdivision (b) after
December 31, 2000, and such load shall be excluded from the
calculation of the 75 megawatts in subdivision (b).
(d) If an electrical corporation seeks to apply the discounts
permitted under subdivision (a) within the geographic area described
in subdivision (b) of
Section 9610, the electrical corporation's resulting rate for
distribution service may not be less than 120 percent of the
electrical corporation's marginal distribution cost of serving that
customer.
SEC. 15. Section 454.5 of the Public Utilities Code is amended and
renumbered to read:
636. (a) The commission shall specify the allocation of
electricity, including quantity, characteristics, and duration of
electricity delivery, that the Department of Water Resources shall
provide under its power purchase agreements to the customers of each
electrical corporation, which shall be reflected in the electrical
corporation's proposed procurement plan. Each electrical corporation
shall file a proposed procurement plan with the commission not later
than 60 days after the commission specifies the allocation of
electricity. The proposed procurement plan shall specify the date
that the electrical corporation intends to resume procurement of
electricity for its retail customers, consistent with its obligation
to serve. After the commission's adoption of a procurement plan, the
commission shall allow not less than 60 days before the electrical
corporation resumes procurement pursuant to this section.
(b) An electrical corporation's proposed procurement plan shall
include, but not be limited to, all of the following:
(1) An assessment of the price risk associated with the electrical
corporation's portfolio, including any utility-retained generation,
existing power purchase and exchange contracts, and proposed
contracts or purchases under which an electrical corporation will
procure electricity, electricity demand reductions, and
electricity-related products and the remaining open position to be
served by spot market transactions.
(2) A definition of each electricity product, electricity-related
product, and procurement related financial product, including support
and justification for the product type and amount to be procured
under the plan.
(3) The duration of the plan.
(4) The duration, timing, and range of quantities of each product
to be procured.
(5) A competitive procurement process under which the electrical
corporation may request bids for procurement-related services,
including the format and criteria of that procurement process.
(6) An incentive mechanism, if any incentive mechanism is
proposed, including the type of transactions to be covered by that
mechanism, their respective procurement benchmarks, and other
parameters needed to determine the sharing of risks and benefits.
(7) The upfront standards and criteria by which the acceptability
and eligibility for rate recovery of a proposed procurement
transaction will be known by the electrical corporation prior to
execution of the transaction. This shall include an expedited
approval process for the commission's review of proposed contracts
and subsequent approval or rejection thereof. The electrical
corporation shall propose alternative procurement choices in the
event a contract is rejected.
(8) Procedures for updating the procurement plan.
(9) A showing that the procurement plan will achieve the
following:
(A) The electrical corporation will, in order to fulfill its unmet
resource needs and in furtherance of Section 701.3, until a 20
percent renewable resources portfolio is achieved, procure renewable
energy resources with the goal of ensuring that at least an
additional 1 percent per year of the electricity sold by the
electrical corporation is generated from renewable energy resources,
provided sufficient funds are made available pursuant to Sections
399.6 and 399.15, to cover the above-market costs for new renewable
energy resources.
(B) The electrical corporation will create or maintain a
diversified procurement portfolio consisting of both short-term and
long-term electricity and electricity-related and demand reduction
products.
(C) The electrical corporation will first meet its unmet resource
needs through all available energy efficiency and demand reduction
resources that are cost effective, reliable, and feasible.
(10) The electrical corporation's risk management policy,
strategy, and practices, including specific measures of price
stability.
(11) A plan to achieve appropriate increases in diversity of
ownership and diversity of fuel supply of nonutility electrical
generation.
(12) A mechanism for recovery of reasonable administrative costs
related to procurement in the generation component of rates.
(c) The commission shall review and accept, modify, or reject each
electrical corporation's procurement plan. The commission's review
shall consider each electrical corporation's individual procurement
situation, and shall give strong consideration to that situation in
determining which one or more of the features set forth in this
subdivision shall apply to that electrical corporation. A procurement
plan approved by the commission shall contain one or more of the
following features, provided that the commission may not approve a
feature or mechanism for an electrical corporation if it finds that
the feature or mechanism would impair the restoration of an
electrical corporation's creditworthiness or would lead to a
deterioration of an electrical corporation's creditworthiness:
(1) A competitive procurement process under which the electrical
corporation may request bids for procurement-related services. The
commission shall specify the format of that procurement process, as
well as criteria to ensure that the auction process is open and
adequately subscribed. Any purchases made in compliance with the
commission-authorized process shall be recovered in the generation
component of rates.
(2) An incentive mechanism that establishes a procurement
benchmark or benchmarks and authorizes the electrical corporation to
procure from the market, subject to comparing the electrical
corporation's performance to the commission-authorized benchmark or
benchmarks. The incentive mechanism shall be clear, achievable, and
contain quantifiable objectives and standards. The incentive
mechanism shall contain balanced risk and reward incentives that
limit the risk and reward of an electrical corporation.
(3) Upfront achievable standards and criteria by which the
acceptability and eligibility for rate recovery of a proposed
procurement transaction will be known by the electrical corporation
prior to the execution of the bilateral contract for the transaction.
The commission shall provide for expedited review and either approve
or reject the individual contracts submitted by the electrical
corporation to ensure compliance with its procurement plan. To the
extent the commission rejects a proposed contract pursuant to this
criteria, the commission shall designate alternative procurement
choices obtained in the procurement plan that will be recoverable for
ratemaking purposes.
(d) A procurement plan approved by the commission shall accomplish
each of the following objectives:
(1) Enable the electrical corporation to fulfill its obligation to
serve its customers at just and reasonable rates.
(2) Eliminate the need for after-the-fact reasonableness reviews
of an electrical corporation's actions in compliance with an approved
procurement plan, including resulting electricity procurement
contracts, practices, and related expenses. However, the commission
may establish a regulatory process to verify and assure that each
contract was administered in accordance with the terms of the
contract, and contract disputes which may arise are reasonably
resolved.
(3) Ensure timely recovery of prospective procurement costs
incurred pursuant to an approved procurement plan. The commission
shall establish rates based on forecasts of procurement costs adopted
by the commission, actual procurement costs incurred, or combination
thereof, as determined by the commission. The commission shall
establish power procurement balancing accounts to track the
differences between recorded revenues and costs incurred pursuant to
an approved procurement plan. The commission shall review the power
procurement balancing accounts, not less than semiannually, and shall
adjust rates or order refunds, as necessary, to promptly amortize a
balancing account, according to a schedule determined by the
commission. Until January 1, 2006, the commission shall ensure that
any overcollection or undercollection in the power procurement
balancing account does not exceed 5 percent of the electrical
corporation's actual recorded generation revenues for the prior
calendar year excluding revenues collected for the Department of
Water Resources. The commission shall determine the schedule for
amortizing the overcollection or undercollection in the balancing
account to ensure that the 5-percent threshold is not exceeded. After
January 1, 2006, this adjustment shall occur when deemed appropriate
by the commission consistent with the objectives of this section.
(4) Moderate the price risk associated with serving its retail
customers, including the price risk embedded in its long-term supply
contracts, by authorizing an electrical corporation to enter into
financial and other electricity-related product contracts.
(5) Provide for just and reasonable rates, with an appropriate
balancing of price stability and price level in the electrical
corporation's procurement plan.
(e) The commission shall provide for the periodic review and
prospective modification of an electrical corporation's procurement
plan.
(f) The commission may engage an independent consultant or
advisory service to evaluate risk management and strategy. The
reasonable costs of any consultant or advisory service is a
reimbursable expense and eligible for funding pursuant to Section
631.
(g) The commission shall adopt appropriate procedures to ensure
the confidentiality of any market sensitive information submitted in
an electrical corporation's proposed procurement plan or resulting
from or related to its approved procurement plan, including, but not
limited to, proposed or executed power purchase agreements, data
request responses, or consultant reports, or any combination,
provided that the Office of Ratepayer Advocates and other consumer
groups that are nonmarket participants shall be provided access to
this information under confidentiality procedures authorized by the
commission.
(h) Nothing in this section alters, modifies, or amends the
commission's oversight of affiliate transactions under its rules and
decisions or the commission's existing authority to investigate and
penalize an electrical corporation's alleged fraudulent activities,
or to disallow costs incurred as a result of gross incompetence,
fraud, abuse, or similar grounds. Nothing in this section expands,
modifies, or limits the State Energy Resources Conservation and
Development Commission's existing authority and responsibilities as
set forth in Sections 25216, 25216.5, and 25323 of the Public
Resources Code.
(i) An electrical corporation that serves less than 500,000
electric retail customers within the state may file with the
commission a request for exemption from this section, which the
commission shall grant upon a showing of good cause.
(j) (1) Prior to its approval pursuant to Section 851 of any
divestiture of generation assets owned by an electrical corporation
on or after the date of enactment of the act adding this section, the
commission shall determine the impact of the proposed divestiture on
the electrical corporation's procurement rates and shall approve a
divestiture only to the extent it finds, taking into account the
effect of the divestiture on procurement rates, that the divestiture
is in the public interest and will result in net ratepayer benefits.
(2) Any electrical corporation's procurement necessitated as a
result of the divestiture of generation assets on or after the
effective date of the act adding this subdivision shall be subject to
the mechanisms and procedures set forth in this section only if its
actual cost is less than the recent historical cost of the divested
generation assets.
(3) Notwithstanding paragraph (2), the commission may deem
proposed procurement eligible to use the procedures in this section
upon its approval of asset divestiture pursuant to Section 851.
SEC. 16. Section 454.55 of the Public Utilities Code is amended
and renumbered to read:
637. The commission, in consultation with the State Energy
Resources Conservation and Development Commission, shall identify all
potentially achievable cost-effective electricity efficiency savings
and establish efficiency targets for an electrical corporation to
achieve pursuant to Section 636.
SEC. 17. Section 454.56 of the Public Utilities Code is amended
and renumbered to read:
639. (a) The commission, in consultation with the State Energy
Resources Conservation and Development Commission, shall identify all
potentially achievable cost-effective natural gas efficiency savings
and establish efficiency targets for the gas corporation to achieve.
(b) A gas corporation shall first meet its unmet resource needs
through all available natural gas efficiency and demand reduction
resources that are cost effective, reliable, and feasible.
SEC. 18. Section 454.6 of the Public Utilities Code is amended to
read:
454.6. (a) A contract entered into pursuant to Section 636 by an
electrical corporation for the electricity generated by a replacement
or repowering project that meets the criteria specified in
subdivision (b) shall be recoverable in rates, taking into account
any collateral requirements and debt equivalence associated with the
contract, in a manner determined by the commission to provide the
best value to ratepayers.
(b) To be eligible for rate treatment in accordance with
subdivision (a), a contract shall be for a project which meets all of
the following criteria:
(1) The project is a replacement or repowering of an existing
generation unit of a thermal powerplant.
(2) The project complies with all applicable requirements of
federal, state, and local laws.
(3) The project will not require significant additional
rights-of-way for electrical or fuel-related transmission facilities.
(4) The project will result in significant and substantial
increases in the efficiency of the production of electricity.
(5) The Independent System Operator or local system operator
certifies that the project is needed for local area reliability.
(6) The project provides electricity to consumers of this state at
the cost of generating that electricity, including a reasonable
return on the investment and the costs of financing the project.
SEC. 19. Section 635 of the Public Utilities Code is amended and
renumbered to read:
638. In a long-term plan adopted by an electrical corporation or
in a procurement plan implemented by a local publicly owned electric
utility, the electrical corporation or local publicly owned electric
utility shall adopt a strategy applicable both to newly constructed
or repowered generation owned and procured by the electrical
corporation or local publicly owned electric utility to achieve
efficiency in the use of fossil fuels and to address carbon
emissions.
SEC. 20. Section 709.7 of the Public Utilities Code is repealed.
SEC. 21. Section 1701.6 of the Public Utilities Code is repealed.
SEC. 22. Section 1822 of the Public Utilities Code is amended to
read:
1822. (a) Any computer model that is the basis for any testimony
or exhibit in a hearing or proceeding before the commission shall be
available to, and subject to verification by, the commission and
parties to the hearing or proceedings to the extent necessary for
cross-examination or rebuttal, subject to applicable rules of
evidence, except that verification is not required for any
electricity demand model or forecast prepared by the State Energy
Resources Conservation and Development Commission pursuant to Section
25309 or 25402.1 of the Public Resources Code and approved and
adopted after a hearing during which testimony was offered subject to
cross-examination. The commission shall afford each of these
electricity demand models or forecasts the evidentiary weight it
determines appropriate. Nothing in this subdivision requires the
State Energy Resources Conservation and Development Commission to
approve or adopt any electricity demand model or forecast.
(b) Any testimony presented in a hearing or proceeding before the
commission that is based in whole, or in part, on a computer model
shall include a listing of all the equations and assumptions built
into the model.
(c) Any database that is used for any testimony or exhibit in a
hearing or proceeding before the commission shall be reasonably
accessible to the commission staff and parties to the hearing or
proceeding to the extent necessary for cross-examination or rebuttal,
subject to applicable rules of evidence, as applied in commission
proceedings.
(d) The commission shall adopt rules and procedures to meet the
requirements specified in subdivisions (a), (b), and (c). These rules
shall include procedural safeguards that protect databases and
models not owned by the public utility.
(e) The commission shall establish appropriate procedures for
determining the appropriate level of compensation for a party's
access.
(f) Each party shall have access to the computer programs and
models of each other party to the extent provided by Section 1822.
The commission shall not require a utility to provide a remote
terminal or other direct physical link to the computer systems of a
utility to a third party.
(g) The commission shall verify, validate, and review the computer
models of any electrical corporation that are used for the purpose
of planning, operating, constructing, or maintaining the corporation'
s electricity transmission system, and that are the basis for
testimony and exhibits in hearings and proceedings before the
commission.
(h) The transmission computer models shall be available to, and
subject to verification by, each party to a commission proceeding in
accordance with subdivision (a) of Section 1822, and regulations
adopted pursuant to subdivision (d) of Section 1822.
SEC. 23. Section 2791 of the Public Utilities Code is amended to
read:
2791. (a) The owner of a master-metered mobilehome park or
manufactured housing community that provides gas or electric service
to residents may transfer ownership and operational responsibility to
the gas or electrical corporation providing service in the area in
which the park or community is located pursuant to this chapter, or
as the park or community owner and the serving gas or electrical
corporation mutually agree.
(b) Costs, including both costs related to transfer procedures and
costs related to construction, related to the transfer of ownership
process, whether or not resulting in a transfer of ownership to the
serving gas or electrical corporation, shall not be passed through to
the park or community residents. Costs related to the transfer of
ownership process, whether or not resulting in a transfer of
ownership to the serving gas or electrical corporation, shall not be
passed through to the gas or electrical corporation, except as
otherwise provided in this chapter.
(c) Residents of mobilehome parks and manufactured housing
communities constructed after January 1, 1997, shall be individually
metered and served by gas and electric distribution facilities owned,
operated, and maintained by the gas or electrical corporation
providing the service in the area where the new park or community is
located consistent with the commission's orders regarding unbundling,
aggregation, master-metering, and selection of suppliers by
residential customers. Each gas and electrical corporation shall
cooperate with the owner of any park or community constructed after
January 1, 1997, to ensure timely and expeditious installation of the
gas and electric distribution system and to eliminate any delay in
the design, construction, permitting, and operation of the gas and
electric system in the park or community.
SEC. 24. Section 2792 of the Public Utilities Code is amended to
read:
2792. (a) Upon receipt of a written notice of intent to transfer
from the mobilehome park or manufactured housing community owner, the
gas or electrical corporation shall within 90 days do all of the
following:
(1) Meet with the park or community owner to describe the
procedures involved in a transfer of ownership and operation
responsibility.
(2) Perform a preliminary review of the gas or electric system, or
both, in the park or community.
(3) Inspect documentation provided by the park or community owner
of the construction, operation, and condition of the gas or electric
system, or both.
(4) Advise the park or community owner concerning the general
condition of the plant and equipment, along with a preliminary
opinion concerning the extent of construction work or other activity
necessary to comply with Section 2794.
(5) Offer a preliminary nonbinding estimate of the cost of
transfer.
(6) Offer the park or community owner a preliminary nonbinding
cost estimate to perform an engineering evaluation and estimate the
construction work and equipment replacement to be performed by the
gas or electrical corporation at the owner's expense.
(b) The gas or electrical corporation shall develop the cost
estimate for the engineering evaluation in good faith using the same
methodology as is used for similar projects. The preliminary cost
estimate shall be effective for a minimum of 90 days. The gas or
electrical corporation shall give the owner timely notice of any
increase in the estimated cost of the engineering evaluation.
(c) During 1997, gas and electrical corporations shall make a good
faith effort to respond within 90 days to the notice provided in
subdivision (a).
(d) The gas or electrical corporation may charge a fee for the
initial inspection not to exceed one hundred fifty dollars ($150).
SEC. 25. Section 2793 of the Public Utilities Code is amended to
read:
2793. (a) Upon receipt from the park or community owner of a
deposit representing the gas or electrical corporation's estimated
cost of the engineering evaluation, the gas or electrical corporation
shall, within 90 days, do all of the following:
(1) Develop an engineering plan for bringing the gas or electric
system to the standard described in Section 2794, incorporating all
relevant documentation including plans, drawings, engineering
studies, and other existing documentation provided by the park or
community owner, and considering incorporation of all portions of the
gas or electric system found to be used, useful, and compatible.
(2) Develop an appraisal of the value to the gas or electrical
corporation of the physical plant and equipment found to be used,
useful, and compatible that comprise the gas or electric system, or
both, to be transferred, including an estimate of the remaining
useful life of the gas or electric system. The value to the gas or
electrical corporation shall take into consideration the expenditures
by the park or community owner to comply with the criteria
established in Section 2794.
(3) Present a proposal, in sufficient detail to serve as a bid
document for the transfer of ownership of the system to the gas or
electrical corporation.
(b) The proposal may be based on either of the following
approaches or as the park or community owner and the gas or
electrical corporation mutually agree:
(1) The park or community owner is responsible for all
construction and equipment replacement activity, if any, at the park
or community owner's expense less any credits or allowances, if any,
including credits or allowances based on incremental increases in the
gas or electrical corporation's revenues associated with the park or
community owner's investment in the gas or electric system. The
construction and equipment replacement and the credits and allowances
shall be based on the principles established in the gas or
electrical corporation's line and service extension rules, if
applicable.
(2) The gas or electrical corporation shall pay the park or
community owner for the appraised value to the gas or electrical
corporation of any gas or electric distribution facilities found to
be used, useful, and compatible. If any new facilities are necessary,
the park or community owner shall be responsible for the costs of
the excavation, installation of substructures, conduit and meter
panels, and surface repairs. Except as provided in paragraph (4) of
subdivision (c), the gas or electrical corporation shall be
responsible for the costs of any additional construction and
equipment replacement, including cabling and transformers.
(c) The proposal shall include the following:
(1) A description of construction and equipment replacement
activity, if any, to be accomplished at the park or community owner's
expense.
(2) Requirements for any additional provisions or rights for the
construction or maintenance of public utility facilities on park or
community premises, including easements and rights-of-way acceptable
to the gas or electrical corporation.
(3) Any specific requirements or costs, or both, with respect to
the presence of used and useful materials or equipment that are
nonstandard, including, but not limited to, inventory requirements,
specialized equipment requirements, or specialized personnel or
training.
(4) Any specific requirements or costs, or both, with respect to
the presence of exceptional construction conditions or operation and
maintenance conditions.
(d) If the actual cost of the engineering evaluation is greater
than the gas or electrical corporation estimate, the park or
community owner shall pay the gas or electrical corporation the
difference within 30 days of receipt of notice. If the actual cost of
the engineering evaluation is less than the deposit, the gas or
electrical corporation shall pay the park or community owner the
difference within 30 days. The content of the proposal shall become
the property of the park or community owner.
(e) Within 90 days of receipt of the proposal for transfer of
ownership, a park or community owner may do any of the following:
(1) Present objections to the gas or electrical corporation in
writing for resolution and may require mediation of the commission if
the parties are unable to resolve the objection.
(2) Decline to proceed, without prejudice to the right to present
a new notice at any future date.
(3) Accept the proposal and contract with the gas or electrical
corporation for completion of the construction work and equipment
replacement, if any,
or the acquisition of the gas or electric system, or both.
(4) Accept the proposal and contract with an approved third party
for completion of the construction work and equipment replacement, if
any, in accordance with the applicable gas or electrical corporation
applicant installation rules.
(f) Any new facilities provided by the gas or electrical
corporation to extend distribution or service facilities from the
existing gas or electrical corporation system within the park to
previously undeveloped locations shall be provided in accordance with
line extension rules and service extension rules contained in gas or
electrical corporation tariffs filed with the commission, including
any and all free extensions, allowances, and advances subject to
refund.
(g) Upon completion of construction work and equipment
replacement, if any, receipt of appropriate inspection approval from
the gas or electrical corporation and authorities having jurisdiction
for the inspections, and completion of all financial transactions
among the parties, the park or community owner shall transfer and the
gas or electrical corporation shall acquire ownership and
operational responsibility for the gas or electric system.
(h) Upon receipt of the proposal described in paragraph (3) of
subdivision (a), the park or community owner shall notify the park
residents concerning the pendency of a transfer process request and
the provisions of the transfer process law.
SEC. 26. Section 2794 of the Public Utilities Code is amended to
read:
2794. (a) A gas or electric system shall be considered acceptable
for transfer if it is in compliance with the following criteria:
(1) It is capable of providing the end users a safe and reliable
source of gas or electric service.
(2) It meets the commission's general orders, is compatible, and,
in the case of new construction, meets the gas or electrical
corporation's design and construction standards insofar as they are
related to safety and reliability. The parties may waive these
requirements by mutual agreement and, where necessary, with
commission approval. The deviations as are agreed upon may be
reflected in the purchase price.
(3) It is capable of serving the customary expected load in the
park or community determined in accordance with a site-specific
study, studies of comparable parks or communities, industry
standards, and the gas or electrical corporation's rules as approved
by the commission.
(b) As used in this section, "customary expected load" means the
anticipated level of service demanded by the dwelling units in the
park or community. The park or community owner shall not be
responsible for betterments or improvements to the gas or electrical
corporation's distribution system facilities or operations that do
not benefit the park or community.
(c) Satisfaction of the criteria shall not require any particular
system architecture or replacement of used and useful equipment,
plant, or facilities, except as needed to comply with subdivision
(a). Equipment, facilities, or plant that are part of the existing
gas or electric system shall be considered compatible unless their
presence in the system would cause substantial increase in the
frequency or duration of outages in the case of failure or emergency,
or they have no remaining useful life. Pursuant to subdivision (c)
of Section 2793, equipment, facilities, or plant that require special
training for the gas or electrical corporation's employees, or
require the gas or electrical corporation to maintain inventories of
nonstandard equipment may be considered compatible, but their
presence may be reflected in the appraised value or the cost imposed
on the park or community owner.
SEC. 27. Section 2795 of the Public Utilities Code is amended to
read:
2795. The park or community owner and the gas or electrical
corporation shall develop a cost for the transfer of the gas or
electric system that reflects the factors in Section 2793, indemnity
and liability issues, and any other factors as the parties may
mutually agree upon, and to which the gas or electrical corporation's
ratepayers are indifferent. The parties may agree on a schedule for
phasing in facilities to meet expected load increases and
betterments, and the costs associated with those activities.
SEC. 28. Section 2796 of the Public Utilities Code is amended to
read:
2796. (a) During the pendency of a transfer request, the owner of
the park or community shall be responsible for the continued
maintenance to preserve the integrity of the park or community gas or
electric system and safe and reliable operation of the park or
community system in accordance with applicable laws.
(b) During the pendency of a transfer request the owner of the
park or community shall be liable for injury and damage resulting
from operation of the submetered gas and electric system. After
transfer the gas or electrical corporation shall assume
responsibility for operation of the gas or electric system and
provision of service to residents of the park or community and shall
assume liability for any future injury or damage resulting from
operation of the gas or electric system except with respect to
defects known to the park or community owner and not disclosed to the
gas or electrical corporation during the transfer of ownership
process.
SEC. 29. Section 2797 of the Public Utilities Code is amended to
read:
2797. The commission shall permit the gas or electrical
corporation to recover in its revenue requirement and rates all costs
to acquire, improve, upgrade, operate, and maintain transferred
mobilehome park or manufactured housing community gas or electric
systems.
SEC. 30. Section 2798 of the Public Utilities Code is amended to
read:
2798. The commission shall adopt a standard form of agreement for
transfer of gas and electric distribution facilities in mobilehome
parks and manufactured housing communities that shall be the basis
for expedited approval of the transfers. The contract shall be based
on this chapter, the regulations of the commission, and on gas or
electrical corporation rules and regulations, as approved by the
commission.
SEC. 31. Section 2799 of the Public Utilities Code is amended to
read:
2799. (a) The mobilehome park or manufactured housing community
owner may, by written notice, stop the transfer process at any time.
Within 60 days of delivery to the park or community owner of an
itemized bill, the owner shall reimburse the gas or electrical
corporation for all costs incurred through the date notice is
provided.
(b) At any time during the transfer of ownership process, either
party may apply to the commission for informal mediation and
resolution of any issue, finding, determination, or delay in the
conversion process.
(c) If the initiation of the transfer process does not result in a
transfer of the park or community owner's gas or electric system to
the gas or electrical corporation, all information, data, reports,
studies, and proposals shall be retained by the gas or electrical
corporation for a period of five years or offered to the park or
community owner. Prior to disposal of the records, the gas or
electrical corporation shall offer them to the park or community
owner, except that the gas or electrical corporation shall not be
required to provide proprietary information to the park or community
owner.
SEC. 32. Section 2841 of the Public Utilities Code is amended to
read:
2841. (a) The commission may require an electrical corporation to
purchase from an eligible customer-generator, excess electricity
that is delivered to the grid that is generated by a combined heat
and power system that is in compliance with Section 2843. The
commission may establish a maximum kilowatthours limitation on the
amount of excess electricity that an electrical corporation is
required to purchase if the commission finds that the anticipated
excess electricity generated has an adverse effect on long-term
resource planning or reliable operation of the grid. The commission
shall establish, in consultation with the Independent System
Operator, tariff provisions that facilitate both the provisions of
this chapter and the reliable operation of the grid.
(b) (1) Every electrical corporation shall file with the
commission a standard tariff for the purchase of excess electricity
from an eligible customer-generator.
(2) The tariff shall provide for payment for every kilowatthour
delivered to the electrical grid by the combined heat and power
system at a price determined by the commission.
(3) The tariff shall include flexible rates with options for
different durations, not to exceed 10 years, and fixed or variable
rates relative to the cost of natural gas.
(4) The commission shall ensure that ratepayers not utilizing
combined heat and power systems are held indifferent to the existence
of this tariff.
(c) The commission, in reviewing the tariff filed by an electrical
corporation, shall establish time-of-delivery rates that encourage
demand management and net generation of electricity during periods of
peak system demand.
(d) Every electrical corporation shall make the tariff available
to eligible customer-generators that own, or lease, and operate a
combined heat and power system within the service territory of the
electrical corporation, upon request. An electrical corporation may
make the terms of the tariff available to an eligible customer in the
form of a standard contract.
(e) The costs and benefits associated with any tariff or contract
entered into by an electrical corporation pursuant to this section
shall be allocated to all benefiting customers. For purposes of this
section "benefiting customers" may, as determined by the commission,
include bundled service customers of the electrical corporation,
customers of the electrical corporation that receive their electric
service through a direct transaction, as defined in subdivision (c)
of Section 331, and customers of an electrical corporation that
receive their electric service from a community choice aggregator, as
defined in Section 331.1.
(f) The physical generating capacity of the combined heat and
power system shall count toward the resource adequacy requirements of
load-serving entities for purposes of Section 635.
(g) The commission shall adopt or maintain standby rates or
charges for combined heat and power systems that are based only upon
assumptions that are supported by factual data, and shall exclude any
assumptions that forced outages or other reductions in electricity
generation by combined heat and power systems will occur
simultaneously on multiple systems, or during periods of peak
electrical system demand, or both.
(h) The commission may modify or adjust the requirements of this
article for any electrical corporation with less than 100,000 service
connections, as individual circumstances merit.
SEC. 33. Section 2842 of the Public Utilities Code is amended to
read:
2842. The commission, in approving a procurement plan for an
electrical corporation pursuant to Section 636, shall require that
the electrical corporation's procurement plan incorporate combined
heat and power solutions to the extent that it is cost effective
compared to other competing forms of wholesale generation,
technologically feasible, and environmentally beneficial,
particularly as it pertains to reducing emissions of carbon dioxide
and other greenhouse gases.
SEC. 34. Section 2842.4 of the Public Utilities Code is amended to
read:
2842.4. (a) The commission shall, for each electrical
corporation, establish a pay-as-you-save pilot program for eligible
customers.
(b) For the purposes of this section, an "eligible customer" means
a customer of an electrical corporation that meets the following
criteria:
(1) The customer uses a combined heat and power system with a
generating capacity of not more than 20 megawatts that is in
compliance with Section 2843.
(2) The customer is any of the following:
(A) A nonprofit organization described in Section 501(c) (3) of
the Internal Revenue Code (26 U.S.C. Sec. 501(c) (3)), that is exempt
from taxation under Section 501(a) of that code (26 U.S.C. Sec. 501
(a)).
(B) A federal, state, or local government facility.
(c) The pilot program shall enable an eligible customer to finance
all of the upfront costs for the purchase and installation of a
combined heat and power system by repaying those costs over time
through on-bill financing at the difference between what an eligible
customer would have paid for electricity and the actual savings
derived for a period of up to 10 years.
(d) The commission shall ensure that the reasonable costs of the
electrical corporation associated with the pilot program are
recovered.
(e) All costs of the pay-as-you-save program or financing
mechanisms shall be borne solely by the combined heat and power
generators that use the program or financing mechanisms, and the
commission shall ensure that the costs of the program are not shifted
to the other customers or classes of customers of the electrical
corporation.
(f) Each electrical corporation shall make on-bill financing
available to eligible customers until the statewide cumulative rated
generating capacity from pilot program combined heat and power
systems in the service territories of the three largest electrical
corporations in the state reaches 100 megawatts. An electrical
corporation shall only be required to participate in the pilot
program until it meets its proportionate share of the 100-megawatt
limitation, based on the percentage of its peak demand to the total
statewide peak demand within the service territories of all
electrical corporations.
(g) An approval made by the Department of Finance for a state
agency to purchase, lease, or otherwise acquire a combined heat and
power facility that would be financed through the pay-as-you-save
pilot program, may not be made sooner than 30 days after written
notification thereof is provided to the Chairperson of the Senate
Committee on Budget and Fiscal Review, the Chairperson of the
Assembly Committee on Budget, and the Chairperson of the Joint
Legislative Budget Committee, or not sooner than whatever lesser time
the Chairperson of the Joint Legislative Budget Committee may
determine.
SEC. 35. Section 2889.4 of the Public Utilities Code is amended to
read:
2889.4. (a) A local exchange carrier that offers and charges for
pay per use features that do not require an access code to be dialed
to activate the service shall provide a new residential subscriber,
including an existing residential customer ordering an additional
line, during the verbal service order process, with information about
those features. The representatives of a carrier shall offer that
subscriber blocking options for those features.
(b) (1) A local exchange carrier that offers the features
described in subdivision (a) shall advise an existing residential
subscriber who inquires about the features, or who seeks a bill
adjustment for the inadvertent or unauthorized use of those per use
custom calling features, that the features can be blocked and shall
inquire as to whether the subscriber would like to block any or all
of the features.
(2) (A) A local exchange carrier that offers the features
described in subdivision (a) shall provide notice to all existing
residential subscribers not later than May 1, 2000, describing all
features provided on a per use basis, the charge for each activation,
any additional usage or other charges, and detailed information
about the ability to block these features.
(B) The notice shall contain a toll-free number for further
information and shall contain a noticeable postcard size bill insert
that may be returned in the subscriber's bill envelope if they wish
to block any or all of the per use features described in subdivision
(a).
(c) A local exchange service subscriber that has not blocked per
use features in accordance with this section is entitled to a
one-time bill adjustment that shall equal the sum of the charges for
every incident that occurred during the first billing cycle pursuant
to which the subscriber notifies the local exchange carrier that
inadvertent or unauthorized activation occurred with regard to those
per use services that do not require coded dialing to activate. The
one-time bill adjustment shall include an adjustment for any
additional usage charges occurring as a result of inadvertent or
unauthorized activation. The adjustment shall take the form of a
credit to the subscriber's account if the existing technology or
facilities of the local exchange carrier measure usage and permit a
usage credit to be determined and provided.
(d) Nothing in this section prohibits a local exchange carrier
from providing additional bill adjustments at its discretion in
connection with charges imposed for features described in subdivision
(a).
SEC. 36. Section 2889.5 of the Public Utilities Code is amended to
read:
2889.5. (a) A telephone corporation, or any person, firm, or
corporation representing a telephone corporation, shall not make any
change or authorize a different telephone corporation to make any
change in the provider of any telephone service for which competition
has been authorized of a telephone subscriber until all of the
following steps have been completed:
(1) The telephone corporation, its representatives or agents shall
thoroughly inform the subscriber of the nature and extent of the
service being offered.
(2) The telephone corporation, its representatives or agents shall
specifically establish whether the subscriber intends to make any
change in his or her telephone service provider, and explain any
charges associated with that change.
(3) For sales of residential service, the subscriber's decision to
change his or her telephone service provider shall be confirmed by
an independent third-party verification company, or as provided in
paragraph (5). For purposes of this provision, the confirmation by a
third-party verification company shall be made as follows:
(A) The third-party verification company shall meet each of the
following criteria:
(i) Be independent from the telephone corporation that seeks to
provide the subscriber's new service.
(ii) Not be directly or indirectly managed, controlled, or
directed, or owned wholly or in part, by the telephone corporation
that seeks to provide the new service or by any corporation, firm, or
person who directly or indirectly manages, controls, or directs, or
owns more than 5 percent of the telephone corporation.
(iii) Operate from facilities physically separate from those of
the telephone corporation that seeks to provide the subscriber's new
service.
(iv) Not derive commissions or compensation based upon the number
of sales confirmed.
(B) The telephone corporation seeking to verify the sale shall do
so by connecting the subscriber by telephone to the third-party
verification company or by arranging for the third-party verification
company to call the subscriber to confirm the sale.
(C) The third-party verification company shall obtain the
subscriber's oral confirmation regarding the change, and shall record
that confirmation by obtaining appropriate verification data. The
record shall be available to the subscriber upon request. Information
obtained from the subscriber through confirmation shall not be used
for marketing purposes. Any unauthorized release of this information
is grounds for a civil suit by the aggrieved subscriber against the
telephone corporation or its employees who are responsible for the
violation.
(D) Notwithstanding subparagraphs (A), (B), and (C), a service
provider shall not be required to comply with these verification
requirements when the customer directly calls the local service
provider to make changes in service providers. However, a service
provider shall not avoid the verification requirements by asking a
subscribing customer to contact a local exchange carrier directly to
make any change in the service provider. A local exchange carrier
shall be required to comply with these verification requirements for
its own competitive services. However, a local exchange carrier shall
not be required to perform any verification requirements for any
changes solicited by another telephone corporation.
(4) For a sale of residential service, the telephone corporation
seeking to verify the change in service, in addition to the
requirements of paragraph (3), shall notify the subscriber by United
States Postal Service that the subscriber's telephone service
provider has been changed. The service provider that initiated the
change shall send that notice within 14 days of the date of the
change. The notice shall provide the subscriber with clear, legible
notice of the change in service provider, and shall include a
customer service telephone number for the subscriber to call if the
subscriber did not authorize the change in service.
(5) Confirmation of a sale of residential service may be made
using an electronic means that complies with Section 64.1120 of Title
47 of the Code of Federal Regulations in effect as of June 17, 2008.
(6) For sales of all nonresidential services, the subscriber's
decision to change his or her service provider shall be confirmed
through any of the following means:
(A) Independent third-party verification, as set forth in
paragraph (3).
(B) The telephone corporation shall mail to the subscriber an
information package seeking confirmation of his or her change in the
telephone corporation. The information package shall describe the new
service and shall include a postage prepaid postcard or mailer that
the subscriber can use to deny, cancel, or confirm a service order,
as soon as possible, and wait 14 days after the information package
is mailed before making the change in the telephone corporation. The
telephone corporation shall make the change only if the subscriber
does not cancel the change in service order.
(C) Verify the subscriber's change in his or her telephone service
provider by obtaining the subscriber's signature on a document fully
explaining the nature and extent of the action. The document shall
be a separate document, the sole purpose of which is to explain the
nature and extent of the action.
(D) Obtain the subscriber's authorization through an electronic
means that takes the information, including the calling number, and
confirms the change to which the subscriber has given his or her
consent.
(7) Where the telephone corporation obtains a written order for
service, the document shall thoroughly inform the subscriber of the
nature and extent of the action. The subscriber shall be furnished
with a copy of the signed document. The subscriber by his or her
signature on the document shall indicate a full understanding of the
relationship being established with the telephone corporation. If a
written subscriber solicitation or other document contains a letter
of agency authorizing a change in service provider, in combination
with other information including, but not limited to, inducements to
subscribers to purchase service, the solicitation shall include a
separate document, the sole purpose of which is to explain the nature
and extent of the action. If any part of a mailing to a prospective
subscriber is in language other than English, any written
authorization contained in the mailing shall be sent to the same
prospective subscriber in the same language.
(8) The telephone corporation shall retain a record of the
verification of the sale for at least one year. These records shall
be made available to the subscriber, the Attorney General, or the
commission upon request.
(b) If a residential or business subscriber that has not signed an
authorization notifies the telephone corporation within 90 days that
he or she does not wish to change telephone corporations, the
subscriber shall be switched back to his or her former telephone
corporation at the expense of the telephone corporation that
initiated the change.
(c) For purposes of this section, competitive services are those
services where subscribers have the ability to presubscribe to a
telephone service provider.
(d) When a subscriber changes telephone service providers, the
change shall be conspicuously noticed on the subscriber's bill.
Notice in the following form is deemed to comply with this
subdivision:
"NOTICE: Your local (or long distance) telephone service provider
has been changed from (name of prior provider) to (name of current
provider).
Cost of change: $ ____."
(e) Any telephone corporation that violates the verification
procedures described in this section shall be liable to the telephone
corporation previously selected by the subscriber in an amount equal
to all charges paid by the subscriber after the violation.
(f) In addition to the liability described in subdivision (e), any
telephone corporation that violates the verification procedures
described in this section shall credit to a subscriber any charges
paid by the subscriber in excess of the amount that the subscriber
would have been obligated to pay had the subscriber's telephone
service not been changed. The commission shall adopt regulations to
govern credits to subscribers pursuant to this subdivision.
(g) The remedies provided by this section are in addition to any
other remedies available by law.
(h) As described in federal law, no telephone corporation, or any
person, firm, or corporation representing a telephone corporation,
shall make any change or authorize a different telephone corporation
to make any change in the provider of any telephone service for which
competition has been authorized of a telephone subscriber without
having on file, or having instituted reasonable steps designed to
obtain, signed, dated orders for service from the subscriber. All
orders shall be in the form prescribed in federal law for letters of
agency. As described in federal law, the telephone corporation is
responsible for charges associated with disputed changes in telephone
service for which it cannot produce a signed, dated order for
service from the subscriber. This subdivision applies to all
intrastate services for which competition has been authorized.
SEC. 37. Section 2894 of the Public Utilities Code is amended to
read:
2894. (a) Notwithstanding subdivision (e) of Section 2891, the
disclosure of any information by an interexchange telephone
corporation, a local exchange carrier, or a provider of commercial
mobile radio service, as defined in Section 216.8, in good faith
compliance with the terms of a state or federal court warrant or
order or administrative subpoena issued at the
request of a law enforcement official or
other federal, state, or local governmental agency for law
enforcement purposes, is a complete defense against any civil action
brought under this chapter or any other law, including, but not
limited to, Chapter 1.5 (commencing with Section 630) of Title 15 of
Part 1 of the Penal Code, for the wrongful disclosure of that
information.
(b) As used in this section the following terms have the following
meanings:
(1) "Interexchange telephone corporation" means a telephone
corporation that is a long-distance carrier.
(2) "Local exchange carrier" means a telephone corporation that
provides local exchange services.
SEC. 38. Section 5142 of the Public Utilities
Code is amended to read:
5142. (a) Except as provided in Section 5133, a household goods
carrier in compliance with this chapter has a lien on used household
goods and personal effects to secure payment of the amount specified
in subdivision (b) for transportation and additional services ordered
by the consignor. No lien attaches to food, medicine, or medical
devices, items used to treat or assist an individual with a
disability, or items used for the care of a minor child.
(b) (1) The amount secured by the lien is the maximum total dollar
amount for the transportation of the household goods and personal
effects and any additional services (including any bona fide change
order permitted under the commission's tariffs) that is set forth
clearly and conspicuously in writing adjacent to the space reserved
for the signature of the consignor and that is agreed to by the
consignor before any goods or personal effects are moved from their
location or any additional services are performed.
(2) The dollar amount for the transportation of household goods
and personal effects and additional services may not be preprinted on
any form, shall be just and reasonable, and shall be established in
good faith by the household goods carrier based on the specific
circumstances of the services to be performed.
(c) Upon tender to the household goods carrier of the amount
specified in subdivision (b), the lien is extinguished, and the
household goods carrier shall release all household goods and
personal effects to the consignee. Any person having possession or
control of household goods or personal effects, who knows, or through
the exercise of reasonable care should know, that the household
goods carrier has been tendered the amount specified in subdivision
(b), shall release the household goods and personal effects to the
consignor or consignee, upon the request of the consignor or
consignee. If the person fails to release the household goods and
personal effects to the consignor or consignee, any peace officer, as
defined in subdivision (c) of Section 5133, may take custody of the
household goods and personal effects and release them to the
consignor or consignee.
(d) A household goods carrier may enforce the lien on household
goods and personal effects provided in this section except as to any
goods that the carrier voluntarily delivers or unjustifiably refuses
to deliver. The lien shall be enforced pursuant to the procedure set
forth in subdivision (b) of Section 7210 of the Commercial Code.
(e) Notwithstanding subdivision (b), in the event it is necessary
to auction the consignor's goods, the household goods carrier may
deduct, after the sale, its reasonably incurred expenses related to
the sale of the goods in addition to the contract maximum total
dollar amount. Within 14 days after the sale, the carrier shall
provide, without charge, an accounting of the proceeds of the sale.
(f) Nothing in this section affects any rights, if any, of a
household goods carrier to claim additional amounts, on an unsecured
basis, or of a consignor or consignee to make or contest any claim,
and tender of payment of the amount specified in subdivision (b) is
not a waiver of claims by the consignor or consignee.
(g) Any person injured by a violation of this section may bring an
action for the recovery of the greater of one thousand dollars
($1,000) or actual damages, injunctive or other equitable relief,
reasonable attorney's fees and costs, and exemplary damages of not
less than three times the amount of actual damages for a willful
violation.
(h) Any waiver of this section shall be void and unenforceable.
(i) Notwithstanding any other law, this section exclusively
establishes and provides for a household goods carrier's lien on used
household goods and personal effects to secure payment for
transportation and additional services ordered by the consignor.
(j) For purposes of this section, the following terms have the
following meaning:
(1) "Consignor" means the person named in the bill of lading as
the person from whom the household goods and personal effects have
been received for shipment and that person's agent.
(2) "Consignee" means the person named in the bill of lading to
whom or to whose order the household goods carrier is required to
make delivery as provided in the bill of lading and that person's
agent.
SEC. 39. SEC. 38. Section 7000 of
the Public Utilities Code is amended to read:
7000. (a) For purposes of this chapter, a utility shall mean all
of the following:
(1) An electrical corporation.
(2) A water corporation.
(3) A telephone corporation.
(4) A telecommunications carrier, as defined in Section 153 of
Title 47 of the United States Code.
(5) A gas corporation.
(6) A local publicly owned electric utility and a publicly owned
gas utility.
(7) A special district that owns or operates utilities.
(b) This chapter shall also apply to the following entities:
(1) A cable television corporation.
(2) A cable operator, as defined in Section 522 of Title 47 of the
United States Code.
SEC. 40. SEC. 39. Section 8341 of
the Public Utilities Code is amended to read:
8341. (a) No load-serving entity or local publicly owned electric
utility may enter into a long-term financial commitment unless any
baseload generation supplied under the long-term financial commitment
complies with the greenhouse gases emission performance standard
established by the commission, pursuant to subdivision (d), for a
load-serving entity, or by the Energy Commission, pursuant to
subdivision (e), for a local publicly owned electric utility.
(b) (1) The commission shall not approve a long-term financial
commitment by an electrical corporation unless any baseload
generation supplied under the long-term financial commitment complies
with the greenhouse gases emission performance standard established
by the commission pursuant to subdivision (d).
(2) The commission may, in order to enforce this section, review
any long-term financial commitment proposed to be entered into by an
electric service provider or a community choice aggregator.
(3) The commission shall adopt rules to enforce the requirements
of this section, for load-serving entities. The commission shall
adopt procedures, for all load-serving entities, to verify the
emissions of greenhouse gases from any baseload generation supplied
under a contract subject to the greenhouse gases emission performance
standard to ensure compliance with the standard.
(4) In determining whether a long-term financial commitment is for
baseload generation, the commission shall consider the design of the
powerplant and the intended use of the powerplant, as determined by
the commission based upon the electricity purchase contract, any
certification received from the Energy Commission, any other permit
or certificate necessary for the operation of the powerplant,
including a certificate of public convenience and necessity, any
procurement approval decision for the load-serving entity, and any
other matter the commission determines is relevant under the
circumstances.
(5) Costs incurred by an electrical corporation to comply with
this section, including those costs incurred for electricity purchase
agreements that are approved by the commission that comply with the
greenhouse gases emission performance standard, are to be treated as
procurement costs incurred pursuant to an approved procurement plan
and the commission shall ensure timely cost recovery of those costs
pursuant to paragraph (3) of subdivision (d) of Section 636.
(6) A long-term financial commitment entered into through a
contract approved by the commission, for electricity generated by a
zero- or low-carbon generating resource that is contracted for, on
behalf of consumers of this state on a cost-of-service basis, shall
be recoverable in rates, in a manner determined by the commission
consistent with Section 635. The commission may, after a hearing,
approve an increase from one-half to 1 percent in the return on
investment by the third party entering into the contract with an
electrical corporation with respect to investment in zero- or
low-carbon generation resources authorized pursuant to this
subdivision.
(c) (1) The Energy Commission shall adopt regulations for the
enforcement of this chapter with respect to a local publicly owned
electric utility.
(2) The Energy Commission may, in order to ensure compliance with
the greenhouse gases emission performance standard by local publicly
owned electric utilities, apply the procedures adopted by the
commission to verify the emissions of greenhouse gases from baseload
generation pursuant to subdivision (b).
(3) In determining whether a long-term financial commitment is for
baseload generation, the Energy Commission shall consider the design
of the powerplant and the intended use of the powerplant, as
determined by the Energy Commission based upon the electricity
purchase contract, any certification received from the Energy
Commission, any other permit for the operation of the powerplant, any
procurement approval decision for the load-serving entity, and any
other matter the Energy Commission determines is relevant under the
circumstances.
(d) (1) On or before February 1, 2007, the commission, through a
rulemaking proceeding, and in consultation with the Energy Commission
and the State Air Resources Board, shall establish a greenhouse
gases emission performance standard for all baseload generation of
load-serving entities, at a rate of emissions of greenhouse gases
that is no higher than the rate of emissions of greenhouse gases for
combined-cycle natural gas baseload generation. Enforcement of the
greenhouse gases emission performance standard shall begin
immediately upon the establishment of the standard. All
combined-cycle natural gas powerplants that are in operation, or that
have an Energy Commission final permit decision to operate as of
June 30, 2007, shall be deemed to be in compliance with the
greenhouse gases emission performance standard.
(2) In determining the rate of emissions of greenhouse gases for
baseload generation, the commission shall include the net emissions
resulting from the production of electricity by the baseload
generation.
(3) The commission shall establish an output-based methodology to
ensure that the calculation of emissions of greenhouse gases for
cogeneration recognizes the total usable energy output of the
process, and includes all greenhouse gases emitted by the facility in
the production of both electrical and thermal energy.
(4) In calculating the emissions of greenhouse gases by facilities
generating electricity from biomass, biogas, or landfill gas energy,
the commission shall consider net emissions from the process of
growing, processing, and generating the electricity from the fuel
source.
(5) Carbon dioxide that is injected in geological formations, so
as to prevent releases into the atmosphere, in compliance with
applicable laws and regulations shall not be counted as emissions of
the powerplant in determining compliance with the greenhouse gases
emissions performance standard.
(6) In adopting and implementing the greenhouse gases emission
performance standard, the commission, in consultation with the
Independent System Operator shall consider the effects of the
standard on system reliability and overall costs to electricity
customers.
(7) In developing and implementing the greenhouse gases emission
performance standard, the commission shall address long-term
purchases of electricity from unspecified sources in a manner
consistent with this chapter.
(8) In developing and implementing the greenhouse gases emission
performance standard, the commission shall consider and act in a
manner consistent with any rules adopted pursuant to Section 824a-3
of Title 16 of the United States Code.
(9) An electrical corporation that provides electric service to
75,000 or fewer retail end-use customers in California may file with
the commission a proposal for alternative compliance with this
section, which the commission may accept upon a showing by the
electrical corporation of both of the following:
(A) A majority of the electrical corporation's retail end-use
customers for electric service are located outside of California.
(B) The emissions of greenhouse gases to generate electricity for
the retail end-use customers of the electrical corporation are
subject to a review by the utility regulatory commission of at least
one other state in which the electrical corporation provides
regulated retail electric service.
(e) (1) On or before June 30, 2007, the Energy Commission, at a
duly noticed public hearing and in consultation with the commission
and the State Air Resources Board, shall establish a greenhouse gases
emission performance standard for all baseload generation of local
publicly owned electric utilities at a rate of emissions of
greenhouse gases that is no higher than the rate of emissions of
greenhouse gases for combined-cycle natural gas baseload generation.
The greenhouse gases emission performance standard established by the
Energy Commission for local publicly owned electric utilities shall
be consistent with the standard adopted by the commission for
load-serving entities. Enforcement of the greenhouse gases emission
performance standard shall begin immediately upon the establishment
of the standard. All combined-cycle natural gas powerplants that are
in operation, or that have an Energy Commission final permit decision
to operate as of June 30, 2007, shall be deemed to be in compliance
with the greenhouse gases emission performance standard.
(2) The greenhouse gases emission performance standard shall be
adopted by regulation pursuant to the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code).
(3) In determining the rate of emissions of greenhouse gases for
baseload generation, the Energy Commission shall include the net
emissions resulting from the production of electricity by the
baseload generation.
(4) The Energy Commission shall establish an output-based
methodology to ensure that the calculation of emissions of greenhouse
gases for cogeneration recognizes the total usable energy output of
the process, and includes all greenhouse gases emitted by the
facility in the production of both electrical and thermal energy.
(5) In calculating the emissions of greenhouse gases by facilities
generating electricity from biomass, biogas, or landfill gas energy,
the Energy Commission shall consider net emissions from the process
of growing, processing, and generating the electricity from the fuel
source.
(6) Carbon dioxide that is captured from the emissions of a
powerplant and that is permanently disposed of in geological
formations in compliance with applicable laws and regulations, shall
not be counted as emissions from the powerplant.
(7) In adopting and implementing the greenhouse gases emission
performance standard, the Energy Commission, in consultation with the
Independent System Operator, shall consider the effects of the
standard on system reliability and overall costs to electricity
customers.
(8) In developing and implementing the greenhouse gases emission
performance standard, the Energy Commission shall address long-term
purchases of electricity from unspecified sources in a manner
consistent with this chapter.
(9) In developing and implementing the greenhouse gases emission
performance standard, the Energy Commission shall consider and act in
a manner consistent with any rules adopted pursuant to Section
824a-3 of Title 16 of the United States Code.
(f) The Energy Commission, in a duly noticed public hearing and in
consultation with the commission and the State Air Resources Board,
shall reevaluate and continue, modify, or replace the greenhouse
gases emission performance standard when an enforceable greenhouse
gases emissions limit is established and in operation, that is
applicable to local publicly owned electric utilities.
(g) The commission, through a rulemaking proceeding and in
consultation with the Energy Commission and the State Air Resources
Board, shall reevaluate and continue, modify, or replace the
greenhouse gases emission performance standard when an enforceable
greenhouse gases emissions limit is established and in operation,
that is applicable to load-serving entities.
SEC. 41. SEC. 40. Section 8366 of
the Public Utilities Code is amended to read:
8366. Smart grid technology may be deployed in a manner to
maximize the benefit and minimize the cost to ratepayers and to
achieve the benefits of smart grid technology. The commission, in
consultation with the Energy Commission, the ISO, and electrical
corporations, shall evaluate the impact of deployment on major
initiatives and policies including:
(a) Implementation of new advanced metering initiatives.
(b) Achievement of the renewables portfolio standard program
requirements and the need to operate the smart grid of the future
with a substantial increased percentage of electricity generated by
eligible renewable energy resources.
(c) Achievement of state goals for reducing emissions of
greenhouse gases as set forth in the California Global Warming
Solutions Act of 2006 and other state directives.
(d) Achievement of the energy efficiency and demand response goals
as required by Sections 636 and 637 and other state directives.
(e) Modernizing the aging utility grid infrastructure.
(f) Meeting the future energy growth needs of the state with new
and innovative technologies and methods that utilize the existing
assets more efficiently, result in a less environmentally adverse net
impact on the state, meet stringent costs versus benefit
assessments, and provide the ratepayers with new options in meeting
their individual energy needs.
(g) Implementation of technology to improve worker safety,
protection, and productivity.
SEC. 42. SEC. 41. The heading of
Chapter 5 (commencing with Section 8380) is added to Division 4.1 of
the Public Utilities Code, to read:
CHAPTER 5. COMPREHENSIVE ENERGY EFFICIENCY PROGRAM
IMPLEMENTATION
SEC. 43. SEC. 42. Section 9607 of the
Public Utilities Code is amended to read:
9607. (a) The intent of this section is to avoid cost-shifting to
customers of an electrical corporation resulting from the transfer
of distribution services from an electrical corporation to an
irrigation district.
(b) Except as otherwise provided in this section and Section 9608,
and notwithstanding any other provision of law, an irrigation
district that offered electric service to retail customers as of
January 1, 1999, may not construct, lease, acquire, install, or
operate facilities for the distribution or transmission of
electricity to retail customers located in the service territory of
an electrical corporation providing electric distribution services,
unless the district has first applied for and received the approval
of the commission and implements its service consistent with the
commission's order. The commission shall find that service to be in
the public interest and shall approve the request of a district to
provide distribution or transmission of electricity to retail
customers located in the service territory of an electrical
corporation providing electric distribution service if, after notice
and hearing, the commission determines all of the following:
(1) The district will provide universal service to all retail
customers who request service within the area to be served, at
published tariff rates and on a just, reasonable, and
nondiscriminatory basis, comparable to that provided by the current
retail service provider.
(2) If the area the district is proposing to serve is either of
the following:
(A) Is within the district's boundaries but less than the entire
district, the area to be served includes a percentage of residential
customers and small customers, based on load, comparable to the
percentage of residential and small customers in the district, based
on load.
(B) Includes territory outside the district's boundaries, in which
case the territory outside the district's boundaries must include a
percentage of residential customers and small customers, based on
load, comparable to the percentage of residential and small customers
in the county or counties where service is to be provided, based on
load.
(3) Service by the district will be consistent with the intent of
the state to avoid economic waste caused by duplication of facilities
as set forth in Section 8101.
(4) Service by the district will include reasonable mitigation of
any adverse effects on the reliability of an existing service by the
electrical corporation.
(5) The district has established, funded, and is carrying out
public purpose and low-income programs comparable to those provided
by the current electric retail service provider.
(6) That district's tariffed electric rates, exclusive of
commodity costs, will be at least 15 percent below the tariffed
electric rates, exclusive of commodity costs and nonbypassable
charges under Sections 367, 368, 375, 376, and 379, of the electrical
corporation for comparable services.
(7) Service by the district is in the public interest.
(c) An irrigation district that obtains the approval of the
commission under this section to serve an area shall prepare an
annual report available to the public on the total load and number of
accounts of residential, low-income, agricultural, commercial, and
industrial customers served by the irrigation district in the
approved service area.
(d) The commission shall have jurisdiction to resolve and
adjudicate complaint cases brought against an irrigation district
that offered electric service to retail customers as of January 1,
1999, by an interested party where the complaint concerns retail
electric service outside the boundaries of the district and within
the service territory of an electrical corporation. Nothing in this
section grants the commission jurisdiction to adjudicate complaint
cases involving retail electric service by an irrigation district
inside its boundaries or inside an irrigation district's exclusive
service territory.
(e) Any project involving electric transmission or distribution
facilities to be constructed or installed by an irrigation district
to serve retail customers located in the service territory of an
electrical corporation providing electric distribution services shall
comply with the California Environmental Quality Act, (Division 13
(commencing with Section 21000)) of the Public Resources Code. The
county in which the construction or installation is to occur shall
act as the lead agency. If a project involves the construction or
installation of electric transmission or distribution facilities in
more than one county, the county where the majority of the
construction is anticipated to occur shall act as the lead agency.
(f) An irrigation district may not offer service to customers
outside of its district boundaries before offering service to all
customers within its district boundaries.
(g) This section does not apply to electric distribution service
provided by Modesto Irrigation District to those customers or within
those areas described in subdivisions (a), (b), and (c) of Section
9610.
(h) The provisions of this section shall not apply to (1) a
cumulative 90 megawatts of load served by the Merced Irrigation
District that is located within the boundaries of Merced Irrigation
District, as those boundaries existed on December 20, 1995, together
with the territory of Castle Air Force Base which was located outside
the District on that date, or (2) electric load served by the
District which was not previously served by an electrical corporation
that is located within the boundaries of Merced Irrigation District,
as those boundaries existed on December 20, 1995, together with the
territory of Castle Air Force Base which was located outside the
District on that date.
(i) For purposes of this section, a megawatt of load shall be
calculated in accordance with the methodology established by the
California Energy Resource Conservation and Development Commission in
its Docket No. 96-IRR-1890, but the 90 megawatts shall not include
electrical usage by customers that move to the areas described in
paragraph (1) after December 31, 2000.
(j) Subdivision (a) of this section shall not apply to the
construction, modification, lease, acquisition, installation, or
operation of facilities for the distribution or transmission of
electricity to customers electrically connected to a district as of
December 31, 2000, or to other customers who subsequently locate at
the same premises.
(k) In recognition of contractual arrangements and settlements
existing as of June 1, 2000, this section does not apply to the
acquisition or operation of the electric distribution facilities that
are the subject of the Settlement Agreement dated May 1, 2000,
between Pacific Gas and Electric Company and the San Joaquin
Irrigation District.
(l) For purposes of this section, retail customers do not
include an irrigation district's own electric load being served of
retail by an electrical corporation.